As we enter 2026, SMACNA’s Government Affairs team anticipates a busy and consequential year at the federal, state, and local levels. With the national election cycle underway and new policy debates emerging across the country, issues involving infrastructure investment, procurement rules, permitting, workforce development, and labor policy will require consistent engagement.

For SMCA members, several developments stand out.

STATE AND LOCAL DEVELOPMENTS

Permitting and Process Modernization

Philadelphia continues to refine permitting and administrative systems, including digital modernization of L&I platforms. Improvements in processing speed and transparency can impact construction schedules, inspections, and overall project flow.

Why this matters: Contractors benefit from predictable review timelines, reduced administrative delays, and clearer documentation pathways for large mechanical, HVAC, and sheet metal scopes.

Commercial Real Estate Pressures and Development Incentives

The Chamber continues to highlight strain in the commercial real estate market, including reduced occupancy and shifting downtown economics. Policymakers are exploring incentive models for redevelopment and adaptive reuse.

Why this matters: Mechanical contractors often see increased opportunity when older commercial buildings undergo conversion-including: HVAC upgrades, IAQ improvements, or energy-efficiency retrofits.

Statewide Workforce and Economic Development Initiatives

Pennsylvania continues advancing competitive grant programs and sector-based workforce strategies. Discussions include modernization funding for career and technical education, credentialing alignment, and incentives tied to job creation.

Why this matters: Union construction employers depend on long-term workforce pipelines, and state investment helps stabilize training and recruitment efforts across high-demand trades.

NATIONAL DEVELOPMENTS

Redistricting and the 2026 Political Landscape

SMACNA reports significant redistricting activity in several states. These shifts will shape legislative control, committee chairmanships, and state budget priorities.

Why this matters: Funding for school construction, energy projects, transportation, and public building upgrades is often determined through state committees. Political map changes can influence which projects advance.

2026 Gubernatorial Races

Several states face competitive gubernatorial elections that may influence:

• Prevailing wage enforcement
• State capital budgets
• Indoor air quality initiatives
• Apprenticeship and workforce development funding
• Permitting and procurement reform

Why this matters: Governors influence regulatory direction and state-level investments that directly affect contractors’ long-term project pipelines.

SMART Introduces Regional Director Positions

SMART has begun rolling out a Regional Director model intended to improve coordination across multi-state territories.

The goal is to strengthen:
• Communication between local unions and contractors
• Responsiveness to workforce needs
• Alignment between training programs and employer demand
• Consistency in jobsite practices and labor-management efforts

Why this matters: Better coordination supports predictable workforce availability and ensures training standards match contractor needs, particularly for large-scale projects with complex manpower requirements.

LOOKING AHEAD IN 2026

SMCA will continue monitoring legislative and policy activity throughout the year, with a focus on:

• Infrastructure and capital budget decisions
• IAQ and energy-efficiency initiatives in public buildings
• Workforce-related legislation
• Procurement and permitting trends in Philadelphia and statewide
• Policy developments impacting union employers and labor-management partnerships

We appreciate the continued engagement of our members and look forward to keeping you informed as this legislative cycle unfolds.

Sources

• Chamber of Commerce for Greater Philadelphia. “Legislative Updates: A Roundup of State and Local Actions,” December 5, 2025.
• Chamber of Commerce for Greater Philadelphia. “Legislative Updates: A Roundup of State and Local Actions,” December 18, 2025.
• SMACNA National. “Redistricting and the 2026 Political Landscape,” January 12, 2026.
• SMACNA National. “2026 Gubernatorial Races: What to Watch,” January 12, 2026.
• SMACNA National. “SMART Begins Rolling Out Regional Director Positions,” January 12, 2026.